“The difference between a successful person and others is not a lack of strength, not a lack of knowledge, but rather a lack of will”. This saying by Vince Lombardi introduces to us what Mr. Jason Light, the CEO of Emirates Insurance company, is trying to convey about the company’s 40-year which gradually progressed to reach the threshold of success and then its peak.
Given all the recent circumstances on the global, regional and local levels, Mr. Light expects new changes looming in the future of the insurance industry.
* How do you evaluate the state of the insurance sector during the year 2023 globally, regionally and locally?
Globally, 2023 had been marked by a considerable number of natural catastrophes- some of them here in the MENA region with major earthquakes in Turkey/Syria and Morocco. At the same time, like everyone else, the insurance industry has experienced higher interest rates and inflation. Taken together all these factors have made the market firmer.
Regionally, whilst MENA has certainly been overshadowed by recent political developments, many financial indicators, such as overall economic growth and oil price levels are very positive. It’s good to see so many of our clients prospering in the economic climate we find today.
The unique covid period having come to an end, the insurance sector continues to be challenged by overcapacity leading to intense competition particularly in core lines like motor and medical.
* Do you think that non-traditional insurance lines (global warming, natural disasters, cyber insurance…) have become part of general insurance in the Arab region? What is the ability of local insurance companies to provide it?
Certainly, interest in cyber insurance is increasing in the region though sales have been slower to build. That said, I think the demand will only increase in the Middle East in the years ahead led, no doubt, by continued claims events.
As for the other non-traditional lines, the region will not, I think, be the first adopters. These types of insurances require a considerable level of specialist underwriting expertise that is not yet present in the Middle East. So, they are more of a long-term opportunity.
* What are the reasons behind the failure of attempts to merge insurance companies in the Arab region?
Most of the region’s insurance markets are characterized by large numbers of, by global standards, rather small companies. The many cultural factors preventing mergers and acquisitions are well known and I think it is notable that most of the M&Aa activity has been focused on multinational players exiting the market rather than consolidation amongst strong local players. Issues like legacy systems and differences in business cultures and risk appetite are part of the reason for this. However, the highly segmented nature of the major markets cannot, in my view, continue in the longer term – especially with increased regulatory demands as well as the need to continually invest in new digital technologies. Larger units find both these challenges much easier to manage.
* Artificial intelligence has become one of the main work needs in the insurance industry due to its prominent role in improving customer service and increasing efficiency and productivity…
– How do you evaluate its role?
It is certainly the subject of the moment across all sectors, not just insurance. In our own market, it is still a bit early to see exactly where AI will fit into the insurance picture but eventually it certainly will – our industry is based on data analysis and in its ability to make sense of huge quantities of data is where AI will make its major contribution.
* What about your company’s achievements for the year 2023? What are your aspirations for the year 2024?
One of the most important milestones of the year 2023 for Emirates Insurance is the celebration of our 40th anniversary. We started underwriting in Abu Dhabi’s Hamdan Street in 1983. We’re very proud of the contribution we have made to the insurance industry in this country since then starting in a humble office with just 6 staff to our position today as one the nation’s leading insurers and reinsurers.
However, an important anniversary is not just about reflecting on our past – it is also very important to look to the future, Looking ahead to 2024 , we will be making strides in our digitization project, and will look to new product offerings in casualty, specialty, strata and marine. We will also be joined by a new Chief Underwriting Officer in charge of our International Reinsurance business based in Dubai. We have let more to show everyone in the pipeline…. so stay tuned!
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